Which of the following is NOT an assumption belonging to the long-run budget constraint model?
A) The government has a balanced budget.
B) Prices are perfectly flexible.
C) The economy is a price taker, small, and open.
D) The economy can borrow or lend unlimited amounts at the world real interest rate.
Correct Answer:
Verified
Q1: Which of the following is the value
Q3: The notion that a country must live
Q4: Continually rolling the interest on a loan
Q5: Suppose that a country has external wealth
Q6: International borrowing and lending involve changes in:
A)
Q7: A nation's use of international capital markets
Q8: A country has $50 million of debt
Q9: When disaster strikes a country and destroys
Q10: When a disaster destroys a family's home,
Q11: A nation's net income from interest is:
A)
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